Trade Programs
Trade programs are designed to incent trade partners to make decision to favor your brands rather than the ones of your competitors.
What brands are usually paying for:
- Brand visibility through placement of point of sales material (e.g. Posters, dispensers, etc..)
- Position of products in store: close to cashier, at eye level, are desired positions.
- Participation in new product or product extension launches
How are brands paying:
- Cash payement
- Credit for future orders
- Discounts
- Incentives (e.g. Store cleaning, store alarms, gifts, etc..)
Trade program can lead to anti-trust legal action. The trade program should not be deemed anti-competitive. Other brands must be left with a fair chance of being selected by consumers. Seeking specialized legal advice is a must before implementing a trade program.
In our opinion short term positive return on investment must be achieved as trade programs are often very expensive.